To the extent the Fed loans money to the Federal government, it does so indirectly. The Federal Reserve does NOT create $ and “loan” it to US Govt. To the contrary, it buys US debt in open mkt & interest from bonds is RETURNED to Govt. Fed has given Govt $800B+ over past 10 yrs.

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[–]Jesus[S] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (1 child)

Programs like QE create new money by buying assets like U.S. government debt and mortgage-backed securities that are paid for by crediting bank reserve accounts at the Fed with newly created money.[1] The idea is that if banks have extra reserves, they will try to get a return on it by making loans. As economic conditions improve, in theory, the process would be reversed and the securities would be sold again, essentially destroying the new money it had created.

It is still predatory though.

[–][deleted] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

You mean creating money out of nothing then charging interest for it? You think that's predatory?

Come on, you must be one of those crazy conspiracy theorists who think there were human beings in North America before WE settled here.